FTX Payouts Begin Today, Will Bitcoin Price Rally Or Crash In Response?
FTX creditor payouts begin on February 18, targeting smaller creditors with claims of $50,000 or less, totaling approximately $1.2 billion. These creditors will receive full repayment plus 9% annual interest accrued since November 2022. Larger claims over $50,000 will be addressed starting Q2 2025, with a total of $16 billion planned for distribution. The payouts could significantly impact the crypto market, particularly if creditors receive crypto and sell it, potentially exerting downward pressure on prices. Most repayments are expected in cash, with speculation that many will reinvest in Bitcoin, possibly triggering a price rally. However, analysts suggest a substantial portion may flow into altcoins, especially if Ethereum staking ETFs gain regulatory approval in 2025. The total FTX repayment is projected to exceed $16 billion, with significant buying pressure anticipated if reinvested into the market. Bitcoin is currently trading at $95,300, down 0.75% in the last 24 hours.
